Breaking: FBR Freezes Mobilink’s Bank Accounts

Federal Board of Revenue, authority responsible for collection of taxes, has attached all bank accounts of Mobilink, while blocking all imports for the company, said a statement issued by FBR today.

Statement said Pakistan Mobile Communication Ltd (Mobilink) owed Rs. 8.6 billion to the exchequer on account of mis-declaration of Sales Tax and FED, for which Mobilink had appealed the Income Tax Appellate Tribunal for a hold.

However, the Income Tax Appellate Tribunal recently upheld the decision of LTU, Islamabad and confirmed the payable tax amount of 8.6 billion rupees.

On receiving the decision of the Tribunal, Syed Ijaz Hussain, Chief Commissioner, LTU, Islamabad formed various teams of officers headed by Commissioner, LTU, Malik Muhammad Ashraf to recover the amount from the company through attachment of Bank accounts, blocking of imports and recovery through suppliers of the company, which include other telecom companies as well as the Pakistan Telecommunication Authority.

Mobilink said that it is in process of evaluating the situation, and their clarification on the development will come in a while. We will update the story when we get any word from Mobilink.

Sources close to FBR said that authority will now de-attach accounts only after recovering taxes and owed funds from Mobilink. FBR had carried out a similar operation for collection of taxes from PTA last year.

FBR statement confirmed that, as of today, all Bank Accounts of the Company have been attached and imports blocked accordingly.

FBR will take any further action on next working day, the statement said.

Mobilink’s Viewpoint on the Matter:

Responding to FBR’s action, Pakistan Mobile Communications Limited (Mobilink) has clarified that the FBR’s ruling on Sales Tax and FED is sub-judice.

Mobilink in its statement said that company is one of the largest corporate tax payers in Pakistan, and has always remained at the forefront of making its due contribution to the nation’s exchequer.

Mobilink said that it paid PKR 34 billion as taxes in 2011 alone.

“Over its 17 year history of operations, Mobilink has remained committed to Pakistan, and respectful of all laws, including tax laws, which govern over Pakistan”, Mobilink’s statement concluded.

This is the Ghunda Gardi of FBR, the demand is totally baseless and framed with a mind to achieve their revenue targets. Actually they are trying to grab the money from multinationals by hook or by crook. Soon the multinationals will pull out all their investments from Pakistan.

Ali Ahmad

And Mobilink is not the only one!

Energy Giant Hub Power is also in supreme court for the same over Rs 200 Crore of tax case

Not a big deal for May be Link – As per their norms they will just charge 20 to 30 extra rupees from each customer for next 6 to 8 months, by; – Multiple call disconnections – will charge for ghanta package and call will get disconnected in 3 min. – Zero internet speed but complete charging of Rs. 500. – etc etc…. and soon they’ll have surplus….

Anon

THis is Bullshit. Mobilink is the Best Cellular NW. same has been announced by PTA during recent Audit!!!

Arsalan

I agree with Anon. I have used all the operators (except Warid) and my conclusion is that Mobilink is the best company when it comes to signal and coverage..

MA

In my opinion there is no difference between TELENOR, MOBILINK AND UFONE. Regarding PTA, they are biased people.

FBR is doing exactly what is required to demolish all manufacturing activities in Pakistan to feed this bhookee nangee govt. Harssement is all what required to let all the businessmen pull out from this country where they are still somehow struggling to survive.

Baaghi

Zardaris of this country are in action against productive departments(like mobilink) in the guise of FBR.

Pakistan Classified Ads

Wow, story in making. Really if this is true then FBR should also freeze the bank accounts all the Politicians as well. But great step taken by FBR.

Baaghi

FBR is only a puppet in the hands of corrupt politicians (ghaddari group), just to grab the money from the pockets of multinationals. Now, as the public institutions have been looted badly, it is the turn of multinationals.

Word Life

“Mobilink said that it paid PKR 34 billion as taxes in 2011 alone”

This is misleading statement. They have “collected” tax from subscribers as Federal Excise Duty and Sales Tax and deposited it in National Exchequer

They need to tell what they have “paid” from their Income… The amount of “Income Tax” should be mentioned.

I smell politics in it, Mr.Rashid khan CEO is pro nawaz so do some high officials of Mobilink reside in LAHORE and ISLAMABD. Mr khan had been to raiwend manytimes to meet sharif family and on the high level meetings on 3G and new technology investment, mobilink indirectly stance of waiting for the next government though all operators are ready for it but have some reservations on the process of biding and implementation. Government, however no prove and hints of it, is indirectly involved in it..

I was shocked when i saw FBR raided Mobilink house punjab chowrangi with 50 peoples, looks like a ghoonda faujh of recovery and they took majority stuff from service centre. Mobilink operation was stopped at that whole day, a week ago.

ALLAH FORBID, but think if telcos roll out from pakistan, what will happen?

Baaghi

Zardaris(Corrupt Political Gangs in Power) of this country are in action against productive departments(like mobilink) in the covering of FBR.

mani..

for me its the best move.. the one who pay should get the electricity.. we home users/Residential areas are facing the issue because or may be no payments done by huge companies… if they r the best companies they should pay all their tax and bills accordingly.. otherwise for me they are of same category as of govt.

Fahim Sheikh

I love FBR. FBR did the right, went after another mighty one in Pakistan.

MA

I agree with everyone that Mobilink is providing bad services in Pakistan. Regarding PTA report then there is also big ??????????????????????? PTA was also defaulter of taxes as per my information and can be verified from FBR. Its the responsibility of the tax payer to pay taxes but sorry to say i cannot support this way of collection of tax by freezing account of tax payer. Some body told me that this order was issued on 16 May and FBR tried to freeze the accounts 22 May “FAST ACTION AGAINST INDUSTRY” but what about so many other cases like which are pending with FBR. There are so many cases of PRESIDENT, PRIME MINISTER, MNAs and MPAs are pending but there is no update or nobody is willing to touch those files. In Country where TOP LEADERS are not paying taxes and they are also involve in corruption cases then FBR has no right to ask from a common man and INDUSTRY about taxes and rules of PASISTAN. INDUSTRY is giving jobs to common man but what PRESIDENT, PRIME MINISTER, MNAs and MPAs are doing……………………………..

What’s is the purpose of TAX payment please??? The purpose of tax to Government to get to facilities from Government. ELECTRICITY, SECURITY, ROADS, DAMS, CONTROL ON INFLATION, JOBS, REFORMS FOR INDUSTRY, MEDICAL, PROPER EDUCATION …… if Government is providing these facilities to a common man then there is no harm to pay taxes otherwise no body will pay tax except SALARIED PERSON. Anyway after this statement i will definitely receive tax notice from FBR if Mr. Amir Atta will give my information to FBR :)

atif

I am amazed to see people talking about “mobilink is the best” because i think the point of discussion/concern is that Mobilink is not paying taxes. They have earned HUGE profits from the people of Pakistan and they are not paying taxes. So kindly get a life people and we should not only support this decision but also try to make sure or push that this money comes in.

A simple news and we have started showing our own grauge on mobilink. If a call is disconnected somewhere some time, it doesnt mean that the company is corrupt. how many times when you buy shoes, cloths, pen, pensil etc and it has some fault in it. you simply go and return it, and you never call the compnay corrupt. but how and why you call a company which is providing services uniterupted. DO you know how much desil is consumed on a Generator which runs 18 hours a day to run a Cell Site ( tower). that has supposed to by run on Electricity, but since no electricity, the cost is almost trippled. but the customers are still enjoying lowest call rates than ever. Mobilink Has paid 34Billion PKR last year. So think about it before making an opinion

MA

Brother Nadeem: If they are providing services they are charging for it. Its their responsibility to provide proper services to end user. I am also Mobilink, UFONE and TELENOR customer and i am also not receiving good services from Mobilink. In my opinion everyone has the right to express their views. You cannot stop them to do so. If you don’t like these type of comments this you have the option quit from this discussion but you cannot STOP us please. THANKS

Engineer

As an RF engineer working to optimize the network, nothing is ideal. A number of times we receive customer complaints from customers, and it is baseless. Mobilink and Warid are no doubt the best companies in Pakistan in terms of coverage as well as quality of service. Just because you are living on top of a hill, or living in a very confined area, or driving at a high speed, or using a Chinese phone not meeting requirements also plays a role in customer perception. If you are not satisfied, you simply change the service because there are many who are satisfied.

sleepless

This is hilarious, here we are badmouthing a company when we dont have the complete picture ofr true story. I wonder how many of the people blaming Mobilink file income tax/wealth declarations with FBR. I bet non of those replying about even have NTN. Its just not about haivng tax deducted from your salaries, you need to file a tax statement with the authorities as well.

Muhammad Bilal Khan

FBR dirty act. These FBR people want to destroy pakistan industry. I know this whole demand is baseless. God’s Curse on FBR

MA

Dear Bilal: I also know that whole demandis not baseless but we can say some demand :). Dirty act is not from one side, its from both sides, industry as well as from FBR.

SameAsinAlgeria

Orascom Group, owner of Mobilink is well known for evading taxes. This is the same thing that happened in Algeria. People should not accuse FBR of Pakistan that is only doing its job.

Whenever FBR takes action against big crocodiles or us, we start saying bad things about it and when it doesn’t, we say FBR is sleeping. We are hypocrites. If FBR is corrupt, it means we are corrupt, we bribe tax officials.

Baaghi

If FBR is such sincere to this country, then why it doesn’t take action against “Big Crocodiles”. Every one knows to how much extent, political mafia is looting the country. FBR has become a tool in the hands of GHUNDA GARD GOVT LOOTERS. This political mafia has destroyed the public institutions, and now the productive departments like Mobilink etc are on their hit-list.

Most of you didn’t read the judgement of Income Tax Tribunal. It’s totally against the Telecommunication Industry without proper justification. There are some points which are not legal which Industry is doing getting clarification from FBR. Income Tax Tribunal (ITAT) screwed the FBR and use very harsh wording against FBR. In my opinion, the order was just to get the money from OPERATORS to show the high recovery figures. ITAT should be neutral forum instead and their prime responsibility is not to collect the revenue. The purpose of this forum is to give proper opportunity to both sides. In this order ITAT is just talking about STATE REVENUE and nothing else like enforcement department of tax offices. In my opinion MOBILINK should file case in Islamabad High Court with the help of all telecommunication industry because this order is against all Telecommunication Industry.

Jasmine

wow very good FBR i love u for that .Mobilink waly dako hain

Pir

Mobilink tu gaiya kaam say

Mobilinker

This is only result of corruption now trsfered from Politician to lower level as well. another REASOB WHEN MERIT IS SOLD IN MOBILINK AND THEY TAKE CURSE OF THERE EXISTING EMPLOYESS BY GIVING THEM PREJUDICE / PRIORTY ON SOURCE AND NOT GIVING THE DESERVING RIGHT TO EMPLOYEE. ANOTHER reason of this issue us the old minds and relative management is incapable and this is one of the result even mobilink have enough resources and reveneuw to pay. hope yah log justice provide karain isstead of lolipops to lower levels and high perks for perchi mafia and lobi

I am happy that FBR atleast started working to collcet taxes. Not only Mobilink, they should this circle extend to others non payers and control the tax revenue leakages in any cost. Best of Luck FBR.

MYA

i really appreciated FBR management

Saqib

FBR waived off Rs6.1 billion tax liabilities of Mobilink as well as launched its accounts. Based on the FBR, an awareness continues to be arrived at with the organization and “Rs2.5 billion is going to be compensated by Mobilink by May 30, 2012”. It added that relaxation from the amount continues to be waived off as the organization acquired tax surcharge and penalty waiver plan from the FBR.